Income Tax Philippines Calculator🇵🇭

Estimate current Philippines resident-individual income tax from annual or monthly taxable compensation income using the published BIR schedule.

Finance planning estimate

Topic review: Michael Brennan

Small Business Finance Writer. Assigned as the finance topic reviewer for tax, debt, repayment, payroll, and business-finance calculators.

Reviewed 4 April 2026 Updated 4 April 2026 View reviewer profile Contact editorial team

Philippines resident-individual income tax estimate This worksheet applies the current BIR resident-citizen and resident-alien graduated schedule for compensation income earned from 2023 onwards. It annualises monthly taxable income if needed, applies the current bracket carry-forward formula, and shows the yearly and monthly after-tax view.

Income period

Taxable compensation income Display currency

Scope

Use taxable compensation income, not gross salary. This page is for the current resident-individual graduated schedule only. It does not model final taxes, non-resident treatment, self-employment, optional-standard-deduction cases, de minimis issues, or every payroll withholding adjustment.

Enter taxable compensation income Enter annual or monthly taxable compensation income to estimate Philippines resident-individual income tax.

About this calculator

Finance planning estimate Reviewed 4 April 2026 Updated 4 April 2026

Topic review

Michael Brennan

Small Business Finance Writer. Assigned as the finance topic reviewer for tax, debt, repayment, payroll, and business-finance calculators.

Formula provenance

The methodology summary explains the formula family in use, and the source list points to the primary or authoritative references checked for this topic.

Methodology

Annualises monthly taxable compensation income when selected, then applies the current BIR resident-citizen and resident-alien graduated schedule for compensation income earned from 2023 onwards, reporting annual tax, monthly tax equivalent, after-tax income, and bracket-level slices.

Limitations

Expects taxable compensation income as the starting input and does not derive that amount from full payroll details, exempt benefits, or contribution adjustments.
Covers the resident-individual graduated schedule for compensation income only and does not model self-employed, mixed-income, non-resident, or final-tax cases.
Does not reproduce every payroll withholding reconciliation, prior-employer carryover, year-end adjustment, or BIR filing detail.
Rates and rules can change after publication, so official BIR guidance should always control for live decisions.

Disclaimer

This calculator is for Philippines income-tax planning estimates only and does not replace official BIR guidance, payroll computations, tax-return preparation, or professional tax advice. Verify the current rules and the taxpayer's exact facts before filing or relying on the result.

Primary finance sources

BIR - Revenue Regulations No. 8-2018 — Primary BIR regulation implementing the TRAIN income-tax provisions for individual taxpayers.
BIR - Revenue Regulations No. 11-2018 — Primary BIR withholding regulation showing the annual compensation-income schedule for 2023 onwards.
BIR - Withholding Tax Calculator — Official BIR withholding-tax calculator entry point for salary and related withholding checks.

Change notes

Finance change note: the formula, tax or rate assumptions, source set, disclaimer, and planning guidance for this calculator were last reviewed on 2026-04-04. Report a correction at contact@calcipedia.org; substantive rule or assumption changes refresh both the reviewed date and the updated date shown on the page.

See our calculation methodology and editorial standards, plus the editorial contact route, for how this estimate is produced and corrected.

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Philippines Income Tax

Income tax Philippines calculator: estimate current resident-individual tax from the

An income tax Philippines calculator is only useful if it uses the current BIR resident-individual schedule and is clear about what income it expects. This page estimates Philippines income tax from annual or monthly taxable compensation income, then shows the current bracket, blended effective rate, monthly equivalent, and after-tax income so the result can be used for planning rather than guesswork.

What this Philippines income tax calculator is estimating

This page estimates income tax for resident citizens and resident aliens of the Philippines using the graduated schedule that applies to compensation income earned from 2023 onwards. It starts from taxable compensation income, annualises the figure if you enter a monthly amount, and then applies the current published BIR formula for the relevant bracket.

That scope matters because a Philippines tax result can change depending on whether the income is compensation income, business income, mixed income, final-tax income, or a special case such as a non-resident taxpayer. A thin one-line widget can look helpful while still implying that all taxpayer types follow one uniform rule, which is not accurate.

The practical use of this calculator is therefore narrower and more honest. It helps you estimate the tax on taxable compensation income for the resident-individual schedule, but it does not prepare a full BIR return and it does not try to reproduce every payroll withholding adjustment, de minimis treatment, or exempt item that might exist in a real payslip or annual filing.

How the current BIR graduated schedule works

The current resident-individual schedule uses a piecewise formula rather than one flat percentage on the whole income amount. No tax is due on the first PHP 250,000 of taxable income. Above that threshold, the calculation uses the published tax carried forward from the lower brackets plus the marginal rate on the excess over the current bracket floor.

For example, once annual taxable compensation income moves above PHP 400,000 but not above PHP 800,000, the tax is PHP 22,500 plus 20% of the amount above PHP 400,000. Once income moves above PHP 800,000 but not above PHP 2,000,000, the tax becomes PHP 102,500 plus 25% of the amount above PHP 800,000. The same structure continues into the 30% and 35% brackets.

That is why this page shows both the marginal rate and the effective rate. The marginal rate tells you what applies to the next peso inside the current bracket, while the effective rate shows the blended burden on the whole taxable-income amount after the lower slices have been taxed at zero or lower rates.

Annual taxable income = Monthly taxable compensation income × 12

Used only when the entered compensation figure is monthly rather than annual.

Tax due = Base tax from lower brackets + (Income above the current bracket floor × current marginal rate)

Matches the graduated schedule reproduced in the current BIR regulations and withholding guidance for compensation income earned from 2023 onwards.

Effective rate = Total income tax ÷ Annual taxable income × 100

Shows the blended burden across the whole taxable-income amount rather than only the top bracket rate.

Worked examples: lower-mid bracket and top-bracket territory

Suppose annual taxable compensation income is PHP 500,000. The first PHP 250,000 is untaxed. The next PHP 150,000 from PHP 250,000 to PHP 400,000 is taxed at 15%, producing PHP 22,500. The remaining PHP 100,000 above PHP 400,000 is taxed at 20%, producing another PHP 20,000. Total annual tax is therefore PHP 42,500, which is an 8.5% effective rate on the whole PHP 500,000.

Now consider annual taxable compensation income of PHP 10,000,000. At that level the published 35% top marginal rate applies to the amount above PHP 8,000,000, but the result is still not just 35% of the whole income amount. The fixed tax carried forward through the lower brackets is PHP 2,202,500, and the remaining PHP 2,000,000 above PHP 8,000,000 is taxed at 35%, adding PHP 700,000. The total annual tax becomes PHP 2,902,500.

These examples show why the page reports both annual tax and monthly tax equivalent. Salary planning, budgeting, and offer comparison are usually easier when the annual BIR-style tax is translated into a monthly view, but the yearly bracket logic remains the underlying legal basis for the estimate.

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What this estimator does not include

This page does not determine taxable compensation income from gross payroll on its own. You still need to know which parts of pay are taxable, which are exempt, and which employer-side payroll rules or year-end adjustments apply. De minimis benefits, mandatory contributions, exempt 13th-month and similar benefits within the legal cap, and other payroll details can all change the taxable base before the bracket formula is even applied.

It also does not cover every taxpayer category. Non-resident treatment, business-income options, mixed-income cases, final taxes, capital-gain rules, and return-preparation details can materially change the outcome. The calculator is intentionally framed as a resident-individual compensation-income worksheet so it does not imply more legal coverage than it really has.

Use the result as a planning estimate for budgeting and salary comparisons, not as a filing answer. If the number matters for payroll reconciliation, withholding disputes, or a BIR filing decision, the current official BIR guidance and the actual facts of the taxpayer's situation should control.

Further reading

BIR - Revenue Regulations No. 8-2018 — Primary BIR regulation implementing the TRAIN income-tax provisions, including the resident-individual graduated schedule.
BIR - Revenue Regulations No. 11-2018 — Primary BIR withholding regulation reproducing the compensation-income annual schedules and withholding mechanics, including the 2023-onwards table.
BIR - Withholding Tax Calculator — Official BIR withholding calculator entry point for salary and other withholding scenarios.

Frequently asked questions

Does this Philippines income tax calculator use gross salary or taxable compensation income?

It expects taxable compensation income, not raw gross salary. If part of the compensation package is exempt or excluded before the income-tax schedule is applied, you should adjust for that first. Using gross pay when the taxable base is lower will overstate the result.

Why is the effective tax rate lower than the marginal rate on the page?

Because the marginal rate applies only to the next peso in the current bracket. Lower slices of income are still taxed at zero or lower published rates, so the blended burden across the whole taxable-income amount is lower than the top rate currently touching the final slice.

Does this page work for self-employed or mixed-income taxpayers in the Philippines?

No. This page is intentionally scoped to the resident-individual graduated schedule for compensation income. Self-employed, mixed-income, final-tax, and special-case taxpayers can follow materially different rules, so this result should not be treated as a universal Philippines income-tax answer.

Can this calculator replace BIR withholding, year-end adjustment, or return-filing software?

No. It is a planning worksheet, not a filing engine. Real payroll withholding and annual settlement can differ because of exempt benefits, contribution treatment, prior employer income, year-end adjustments, and taxpayer-specific facts that this page does not attempt to model fully.

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